(Source: New York Times)

BUDAPEST — It all seemed so promising.

Two or three years ago Budapest, just like the rest of Europe, was about to capitalize on the property boom. The European Union gave Hungary €25 billion, or $34 billion, in 2007 for new roads and a new Metro for the capital. And, anticipating the improvements, new apartment blocks and smart conversions started springing up around the city.

But the market’s financial health didn’t rise along with the buildings.

“Prices are low compared with Europe and Eastern Europe and the expected growth has not arrived,” said Boldizsar Horvath, head of marketing for Colliers International real estate in Budapest. “We do not expect the realization of any growth in value for residential real estate in the short term.

Read Richard Holledge’s full article “Life After the Property Boom That Wasn’t” in the New York Times (October 1, 2009).

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